The Africa Finance Corporation (AFC) announced on Friday the signing of a €381.5-million financing package for road transport infrastructure development in Angola. The AFC, founded in 2007, serves to catalyse private sector-led infrastructure development across Africa. This latest financing package will fund the engineering, procurement and building of 186 bridges for, plus other essential enhancements to, Angola’s road network.

The AFC was mandated to be the lead investor for the commercial tranche of the package, and has committed itself to contribute €85-million to the total. Export credit financing for the construction programme is being provided by the US Export-Import Bank and the US Private Export Funding Corporation. The key role of coordinating and structuring is being fulfilled by Standard Chartered Bank.

The main engineering, procurement and construction contractor is Portuguese civil engineering group Conduril. The bridges will be supplied by giant US construction group Acrow. The financing agreement was signed in Dallas, in the US state of Texas, at the US-Africa Business Summit, organised by the Corporate Council on Africa.

“AFC is proud to work with the government and other partners on this landmark project which is set to transform the country’s road transportation infrastructure as Angola makes strides to diversify its economy away from oil,” affirmed AFC board member and financial services head Sanjeev Gupta. “This project not only supports the country’s drive to make agriculture a foundation for economic growth, but it also prioritises the development of climate resilient infrastructures which contributes significantly to Angola’s climate adaptation plan.”

The project is an initiative of Angola’s Public Works, Urban Planning and Housing Ministry. Its purpose is to improve access to remote areas, with the aim of supporting industrial and commercial development. By cutting travel times and transport costs, the programme will reduce poverty and initiate prosperity. In particular, it will stimulate the agricultural sector, by giving access to markets. With markets to sell to, local farmers can grow more cereals for both human and animal consumption, as well as raise more livestock. For the country as a whole, this will reduce its currently increasing food imports and promote the localisation of food chains.